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Increase in E-commerce to Emerge as a Key Driver for the Consumer Electronics Market in Bulgaria Until 2020, Reports Technavio
[July 29, 2016]

Increase in E-commerce to Emerge as a Key Driver for the Consumer Electronics Market in Bulgaria Until 2020, Reports Technavio


Technavio analysts forecast the consumer electronics market in Bulgaria to grow at a CAGR of 10.62% during the forecast period, according to their latest report.

The research study covers the present scenario and growth prospects of the consumer electronics market in Bulgaria for 2016-2020. Based on the type of product, the consumer electronics market in Bulgaria can be classified as follows:

  • Smartphones
  • Televisions, and video monitors and projectors
  • Cameras (television cameras, digital cameras, and video camera recorders)
  • Clocks and watches (wall clocks, analog watches, digital watches, and smart watches)
  • Audio equipment (audio separates, speakers, music players, digital media player doc, and hi-fi systems)

According to Brijesh Kumar Choubey, a lead analyst at Technavio for research on retail goods and services, "The consumer electronics market in Bulgaria has been witnessing steady growth owing to factors such as increased disposable income of consumers, launch of new products, and a reviving global economy. By 2020, major players are likely to enter this market. A rise in the number of hypermarket stores and malls, especially in Sofia region, is also expected. Such an entry of new retailers and the expansion of retail formats will provide ample growth opportunities to indigenous manufacturers of consumer electronics."

Technavio analysts highlight the following three factors that are contributing to the growth of the consumer electronics market in Bulgaria:

  • Government initiatives
  • Increase in e-commerce
  • Rapid adoption of smartphones

Government initiatives

Sofia, the capital city of Bulgaria, has a comprehensive talent pool, which makes it a destination of choice for investors. Its investor-friendly business environment and taxation policies reflect its dedication toward encouraging foreign investment in the region. The Bulgarian government enactedthe Bulgarian Investment Encouragement Act, 2007, to encourage foreign investors to invest in the country. It also established an agency called the Bulgarian Foreign Investment Agency, which works toward attracting foreign investment. It is an agency set up by the government that reports directly to the Council of Ministers and is responsible for coordinating the activities of government institutions involved in promoting foreign investments. One of its key functions is to assist companies in the investment process by providing prospective investors with up-to-date information on investment processes, legal advice, and services to help identify suitable Bulgarian partners. It also oversees co-ordination of investment activities with other institutions.



Increase in e-commerce

"Statistics indicate that, by 2012, Internet penetration in Bulgaria was more than 51%. As of 2015, Internet penetration in Bulgaria stands at 60% of the total population. E-commerce in Bulgaria is still in a nascent stage. However, rapid growth in e-commerce is expected over the next five years," says Brijesh.


One key factor that is expected to boost e-commerce in Bulgaria is the development of a number of initiatives by the Bulgarian government to promote e-commerce. These include programs such as Strategy for Information Society Development, National Strategy for Hi-Tech Development, National Strategy for ICT Education, and Draft National Program for e-commerce. These initiatives are aimed at improving the e-commerce environment as well as attracting more players and stakeholders to engage in e-commerce in the country.

Rapid adoption of smartphones

The smartphones segment is one of the key contributors to the consumer electronics market. Bulgaria accession to the EU and subsequent economic growth has led to the growth of the smartphones market. The sales of smartphones, as of H1 of 2014, have increased by 250% year-on-year. Consumers in Bulgaria have access to the latest services, including 4G/LTE (News - Alert). MobilTel, the largest operator of cellphone services in Bulgaria was the first to provide these services. There was a jump of almost 50% in the number of smartphone users in 2015 compared to 2014. There has also been a threefold increase in the number of tablet users. By the end of 2014, there were more than 3 million users of smartphones and almost 1.5 million users of tablets in Bulgaria. Also, as per Vivacom, a leading telecom services provider, there has been a boost in the penetration of smartphones in Bulgaria due to increasing popularity of Android (News - Alert)-based smartphones in the market.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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